Let to Buy Mortgage Advice in Birmingham

As you can probably ascertain from the similar sounding names, a let to buy mortgage in Birmingham is in fact a variation of a buy to let mortgage.



A buy to let in Birmingham will involve you taking out a mortgage on a property you have purchased, with a view to let it out and generate an additional income.



The difference between this and a let to buy mortgage in Birmingham, is that the latter usually occurs with “accidental” landlords. This situation typically comes around when you don’t plan to become a landlord at first, later changing your plans and looking to become one.



Rather than going through all of the stresses involved with selling your home and purchasing a new buy to let property, many homeowners will instead look at renting out their home and using the generated income as a way to pay off their new residential mortgage.

You should always bear in mind the varying costs that will come with your mortgage, and this applies to taking out a let to buy in Birmingham as well. Stamp duty tax isn’t relevant for everyone, but it is worth checking this ahead of time, so that you are aware.



As a dedicated and trusted providers of mortgage advice in Birmingham, one of our mortgage advisors in Birmingham will let you know every cost that is involved in your process, such as stamp duty, during your initial free mortgage appointment.

Because your mortgage in it’s very nature will be tied to both residential and buy to let mortgages, you can often find that let to buy mortgages in Birmingham will have much stricter mortgage lending criteria.



Whilst your ability to take out a mortgage can be affected by a low credit score, CCJ, default and a history of late payments, we do have a vast panel of mortgage lenders, may of whom offer specialist products, who may be able to help someone obtain a let to buy in Birmingham with bad credit.

So first of all, to review a positive point, as has been said, it can create a much less stressful environment than something like selling your home would create. Additionally, it can typically pay for its own mortgage and leave you some extra profit to enjoy.



Conversely to this, you will be responsible for two properties rather than one, and potentially a family as well, who can be living within your property. This can be just as stressful for you as selling a home could be; It’s not for everyone.



Furthermore, whilst you will have a much higher income, the interest rates for these are also much higher than taking out a regular mortgage in Birmingham would be.



There are also fewer mortgage lenders with let to buy mortgage deals on offer, though thankfully we still know of plenty who could help.



That said, whilst residential mortgage rates will be higher, a let to buy mortgage in Birmingham may actually have much more competitive interest rates and fees than a buy to let mortgage in Birmingham perhaps would, something that could work in your favour.



You’ll also have to consider the value of the property. If your properties were to go up in value, you could be in profit when the time comes to sell. On the other hand, if either value dropped, you could be at a loss.

There are various different options you could take if a let to buy mortgage in Birmingham isn’t the option for you. As an example of this, you may potentially benefit from moving into temporary or rental accommodation, so that you could take out a standard buy to let mortgage in Birmingham.



This can end up being quite a costly process and you also may not meet the mortgage lenders criteria for a buy to let mortgage in Birmingham. Further to this, the rental cycle can be quite a difficult one to break out of.



You may also have the option of consent to let. This is where a mortgage lender gives you a certain amount of time in which you can able to partake in consent to let, wherein a mortgage lender will grant you a length of time in which you can rent out your residential property, whilst you move into your new home.



Although this can sound fairly straightforward, this ultimately depends on your mortgage lender and it can be difficult to buy a new home whilst consent to let is currently in place.